New Zealand’s Taste for New Things

New Product Development: New Zealand’s Taste for New Things

• 52% like it when suppliers introduce new products

• 36% purchased a new product during their last shopping trip

• Consumers want more new products on the market that are affordable, novel, healthy, convenient and make their lives easier

• Recommendations from family and friends and seeing it in-store are the best sources of new product information

AUCKLAND, 26 JUNE 2015 – Consumers in New Zealand show an affinity for brands which are investing in new product development according to a new report released by global performance management company, Nielsen. More than half (52%) of New Zealand respondents say they like it when suppliers introduce new products, and more than a third (36%) say they purchased a new product during their last grocery shopping trip.

Geoff Smith, FMCG Director, Nielsen NZ said, “Innovation captures consumer interest and attention, attracting both new customers and faithful loyalists. It can provide retailers with an edge and drives profitability and growth. In New Zealand consumers have a strong appetite for innovation, just look at the success of Lewis Road Creamery Chocolate Milk and Whittakers latest Artisan Range. We are increasingly demanding and expect more choice than ever before."

The Nielsen Global New Product innovation Survey polled 30,000 online respondents in 60 countries to understand consumer attitudes and sentiments about the drivers behind new product purchase intent.

The Nielsen report revealed greater affordability was the key driver of new product trial for consumers in New Zealand followed by novelty and recommendation.

Smith adds, “New Zealanders want products at affordable prices to stay within their weekly grocery budget. Over a quarter of respondents (29%) bought a new product as it was more affordable than what they usually use. Smart suppliers aren’t selling their products at low prices and on promotion but building cost-cutting in the development and design process.”

In terms of nascent product demand, consumers indicated products that centred on affordability, novelty, health and convenience were a key focus.

“There is an increasing awareness of and focus on health. Nearly three-in-five New Zealand respondents (59%) in Nielsen’s recent Global Health & Wellness Survey consider themselves overweight and half (51%) are actively trying to lose weight. And they’re looking for help from the food and beverage manufacturers to make healthier choices” said Smith.

Smith continues, “Consumers are increasingly time poor, as a result we crave anything that makes our live easier and provides us more time to do what we love. More than a quarter of Kiwi respondents say they purchased a new product because it was convenient (23%) and one-in-seven (14%) because it made their life easier. Timesaving products include seasoning mixes, pre-sliced vegetables and prepared meals can save time in the kitchen for consumers.”

When it comes to obtaining information on new products, recommendations from family and friends and seeing it in-store are the best sources of new product information with 60% ranking these as their top five sources. Television advertising plays a key role – one-in-10 consumers in New Zealand rank it as their number one source of new product information and half (50%) rank television advertising in their top five resources. Internet searches and free samples are also key influencers of new product trials with 45% ranking active internet searching in their top five resources of new product information and 39% ranking receiving a free sample in their top five sources.

ends

© Scoop Media